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Shriram Life Pension Plus Plan

Most of the people in India who do not have a state-provided pension plan, find ways to financially secure their retired life. A regular income is very important after you retire as it helps you to take care of your monthly expenses. If you are planning your retirement and are looking for the ideal pension plan for you, check out Shriram Life Pension Plus Plan right away.

To help people build their retirement fund while they are yet working, Shriram Life Insurance offers a unit-linked, non-participating pension plan called “The Shriram Life Pension Plus”. This plan allows the policyholder to choose from four types of investment options they offer to build their retirement fund through investment by buying an immediate annuity policy. This plan also offers a lump sum amount in case of the death of the insured person.

Eligibility – Who is the Shriram Life Pension Plus for?

Individuals will have to meet the below-mentioned eligibility criteria, to be eligible to purchase the Shriram Life Pension Plus:

Parameter Details
Plan Type Unit-linked, Non-participating Pension Plan
Minimum Entry Age   20 years
Maximum Entry Age 65 years
Vesting Age 40 years to 80 years
Policy Term 10, 15, and 35 years

Sum Assured and Premium Range – What you get and what it costs?

Shriram Life Pension Plus Plan does not have a sum assured amount that will be payable when the policy matures. However, the total fund value will be payable. The total fund value is calculated by adding the top-up fund value with the total base premium fund value. Base premium value is nothing but the total fund accumulated through premiums paid towards the base policy. The top-up premium fund value is the total of the fund accumulated through the premiums paid towards a top-up or an add-on.

Parameter Details
Premium Payment Frequency Regular(Annually) and Limited(Monthly)
Premium Paying Term(PPT) The premium paying term for regular premium frequency is the same as the policy term. For limited premium payment frequency, the PPT is as follows:
Term 10 15 to 19 20 to 35
PPT 6 6/10 6/10/15
Minimum Premium For regular policies Yearly: Rs.25,000 Monthly: Rs.4,000 For limited policies Yearly: Rs.48,000 Monthly: Rs.4,000 For single policies Single pay: Rs.1,00,000
Maximum Premium No limit. Subjected to approval from the board

Plan Coverage – What the Shriram Life Pension Plus Covers?

Shriram Life Pension Plus offers four fund options to all policyholders. The policyholder has an option to choose any one of the following fund options or combine two fund options at the inception of the policy:

1. Pension Protector: Under this option, income is accumulated through investing the funds in fixed income securities. The risk involved under this fund option is relatively low. Refer to the table below for more details:

Allocation Percentage of investment
Debt in the form of government and corporate bonds 60% to 100%
Cash/Liquid funds/Money market 0% to 40%

2. Pension Multi Cap Aggressive Fund: Under this option, the main objective is to appreciate the capital fund by investing it high-quality equity. The risk involved under this fund option is comparatively very high. The fund allocation is mentioned below:

Allocation Percentage of investment
Equity 60% to 100%
Cash/Liquid funds/Money market 0% to 40%

3. Pension Balancer: This option offers capital appreciation by investing funds in quality equity and also accumulates income by investing in fixed income securities. The fund allocation is mentioned below:

Allocation Percentage of investment
Equity 60% to 100%
Cash/Liquid funds/Money market 0% to 40%

4. Pension Maximiser: This fund option is similar to Pension Balancer fund option but the percentage of allocation differs. This option also offers capital appreciation by investing funds in quality equity and also accumulates income by investing in fixed income securities. The risk involved under this fund option is moderately high. The fund allocation is mentioned below:

There is another fund option but the policyholder cannot choose this option voluntarily. This option is called Pension Discontinued Policy Fund. This fund is used towards discontinued policies through investment and will be maintained as a unit fund. The risk involved under this fund option is relatively low. The allocation will be as follows:

Allocation Percentage of investment
Government securities 60% to 100%
Cash/Liquid funds/Money market 0% to 40%

Other benefits and features of the Shriram Life Pension Plus Plan are as follows:

Death Benefit In the event of the death of the insured person, the death benefit will be payable under the Shriram Life Pension Plus Plan. The death benefit payable will be higher than the total fund value and will be paid to the nominee. The total fund value is calculated by adding the top-up fund value with the total base premium fund value. Base premium value is nothing but the total fund accumulated through premiums paid towards the base policy. The top-up premium fund value is the total of the fund accumulated through the premiums paid towards a top-up or an add-on. Also, the assured death benefit is 105% of the total premiums paid.
Vesting Benefit If the policyholder survives till the end of the term of the policy, they will be eligible to receive the vesting benefit. The vesting benefit will be higher than total fund value plus the assured vesting benefit. The assured vesting benefit is 101% of the total premiums paid.
Loyalty Additions Throughout the policy term, loyalty additions will be credited to the premium fund value of the base policy. This will be credited in the form of additional units. Please note that if the plan is in discontinued or marked as paid-up state, no loyalty additions will be credited. Once the policy is revived, all due loyalty additions will be credited back From the 5th year of the policy, loyalty additions will be added as a percentage of the average value of the daily fund value of the base policy of the last two years. This will be credited at the end of every five years the base premium fund at the then prevailing NAV. The rate of loyalty additions are as follows:
  At the end of the policy year 5 10 15 20 25 30 35
Annualised Single Premium Slab in Rs. Rs.25,000-Rs.47000 0.25% 0.25% 0.50% 0.50% 0.50% 0.50% 0.50%
  Rs.48,000 to Rs.1,99,000 0.50% 0.50% 1.00% 1.00% 1.00% 1.00% 1.00%
  Rs.2,00,000 to Rs.4,99,000 1.50% 1.50% 3.00% 3.00% 3.00% 3.00% 3.00%
  Rs.5,00,000 2.00% 2.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Surrender Value If the policyholder holder surrenders the policy after the five-year lock-in period, fund value as on the date of surrender will be payable. In this case, the policyholder can either use this amount to buy an immediate annuity plan from Shriram Life Insurance or use the entire proceeds to buy a single premium deferred or annuity plan from the insurer.

Other Key Features of Shriram Life Pension Plus:

Following are some of the other key features of the Shriram Life Pension Plus:

Charges under this policy
  • Premium allocation charge
  • Policy administration charge
  • Mortality charge
  • Fund management charge
  • Discontinuance charge
  • Service tax charge
Top-up premium The policyholders can make top-up premiums from time to time. A top-up premium is an extra premium paid by the policyholder apart from the regular premiums. Please note that top-up premiums once made cannot be withdrawn from the fund. Also, every top-up premium should not be less than Rs.5,000. This option will not be available during the last year of the policy term.
Switching Option At any time during the policy term, the policyholder has an option to switch units from one fund option to another. There is no limit on the number of times a policyholder can switch.
Premium Redirection During the inception of the plan, the policyholder can choose to invest all the future premiums in any of the fund options available.
Partial withdrawals Partial withdrawals are not allowed under this policy.
Grace Period The Shriram Life Pension Plus has a grace period of 30 days from the due date for payment of premiums if the payment is made is yearly. In case the premiums are paid monthly, the grace period is 15 days. Please note that the grace period is applicable for regular and limited premium policies only. There is no grace period for single premium plans.
Revival / Renewal A lapsed policy can be reinstated for full benefits by reviving it by paying the total outstanding premiums without any interest to reinstate the policy.
Free Look Period The Shriram Life Pension Plus has a free look period of 15 days within which the policyholder can cancel the policy and get the premiums paid refunded. For policies purchased through distance marketing, the free look period is 30 days from the receipt of the policy document.
Loan Facility Loan facility is not available under this plan.

Exclusions – What is excluded from the Shriram Life Pension Plus?

Please note that there are no exclusions under the Shriram Life Pension Plus plan.

Tax Benefits – How you can save with the Shriram Life Pension Plus?

Policyholders who have purchased the Shriram Life Pension Plus will enjoy tax benefits under Section 80C of the Income Tax Act, 1961.

Why you should choose the Shriram Life Pension Plus?

Shriram Life Insurance is one of the most reputable insurance providers in India. From unit-linked insurance plans to endowment plans and pension plans, they offer it all. They are also known for the innovative group insurance plans that they offer at affordable prices for the socially backward sections of the society. Within few years, they have gained thousands of customers and have financially protected millions of lives. Also, all the insurance products offered by this well-established insurer are carefully designed after sound research. If you are an individual looking for an efficient pension plan, Shriram Life Pension Plus Plan is ideal for you. Start planning for your retirement when you are young because how you spend your retired life matters.

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